Question 1

An increase in the value of the U.S. dollar relative to other currencies will increase U.S. imports.

Accepted Answer

A) True 
 B)False

Question 2

If imports increase as disposable income increases, economic growth will __________ net exports and contribute to a trade __________.

Accepted Answer

A)  increase; deficit
B)  increase; surplus
C)  decrease; deficit
D)  decrease; surplus
E)  not affect; balance

Question 3

If the U.S. economy were to go through a severe recession by itself (i.e., without it being contagious to the rest of the world), we would typically observe an increase in the U.S. trade deficit.

Accepted Answer

A) True 
 B)False

Question 4

U.S. economic growth does not contribute to a U.S. trade deficit.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following statements regarding imports and exports is true?

Accepted Answer

A)  Both imports and exports vary directly with the level of domestic income.
B)  Both imports and exports vary inversely with the level of domestic income.
C)  Imports vary directly with the level of domestic income; exports are independent of the level of domestic income.
D)  Exports vary directly with the level of domestic income; imports are independent of the level of domestic income.
E)  Both imports and exports are independent of the level of domestic income.

Question 6

Subtracting the import function from the export function produces the net export function.

Accepted Answer

A) True 
 B)False

Question 7

In 2007, the value of the dollar declined, which should have __________ exports, __________ imports, and shifted the net export function __________.

Accepted Answer

A)  increased, decreased, downward
B)  increased, increased, upward
C)  increased, decreased, upward
D)  decreased, decreased, downward
E)  decreased, increased, downward

Question 8

An increase in U.S. income would lead to

Accepted Answer

A)  an increase in U.S. exports and a decrease in U.S. imports
B)  a decrease in U.S. exports and an increase in U.S. imports
C)  an increase in both U.S. imports and U.S. exports
D)  a decrease in both U.S. exports and U.S. imports
E)  no change in U.S. exports and an increase in U.S. imports

Question 9

An increase in the value of the U.S. dollar relative to foreign currencies would lead to

Accepted Answer

A)  an increase in U.S. exports and a decrease in U.S. imports
B)  a decrease in U.S. exports and an increase in U.S. imports
C)  an increase in both U.S. imports and U.S. exports
D)  a decrease in both U.S. exports and U.S. imports
E)  no change in exports and an increase in U.S. imports

Question 10

Which of the following would shift the U.S. net export function downward?

Accepted Answer

A)  an increase in the value of the U.S. dollar relative to other currencies
B)  a decrease in the value of the U.S. dollar relative to other currencies
C)  a decrease in U.S. incomes relative to other countries
D)  a decrease in U.S. price levels relative to foreign price levels
E)  an increase in foreign incomes relative to U.S. incomes

Question 11

If one British pound originally exchanges for one U.S. dollar and then is revalued to exchange for two U.S. dollars, what should happen to U.S. net exports?

Accepted Answer

A)  Since the pound costs more, net exports will increase.
B)  Since the dollar costs more, net exports will increase.
C)  Since the dollar costs less, net exports will decrease.
D)  Since the dollar costs more, net exports will decrease.
E)  Since the dollar costs less, net exports will increase.

Question 12

A decrease in U.S. income would lead to a(n)

Accepted Answer

A)  increase in U.S. exports
B)  decrease in U.S. imports
C)  decrease in both U.S. imports and U.S. exports
D)  increase in U.S. exports and a decrease in U.S. imports
E)  decrease in U.S. exports and an increase in U.S. imports

Question 13

An increase in U.S. consumers' incomes will decrease U.S. exports.

Accepted Answer

A) True 
 B)False  False

Question 14

If U.S. net exports are negative,

Accepted Answer

A)  U.S. consumers are spending less on foreign goods than foreign consumers are spending on U.S. goods
B)  U.S. consumers are spending more on foreign goods than foreign consumers are spending on U.S. goods
C)  the government should promote imports to balance international trade
D)  U.S. consumers are spending more on foreign goods than they are spending on U.S. goods
E)  U.S. disposable income is low B

Question 15

Which of the following factors is not assumed constant along the U.S. net export function?

Accepted Answer

A)  U.S. price levels and foreign price levels
B)  interest rates in the U.S. and abroad
C)  exchange rates between the U.S. and other currencies
D)  foreign income levels
E)  income levels in the U.S.

Question 16

U.S. net exports will fall if

Accepted Answer

A)  U.S. income rises
B)  U.S. income falls
C)  U.S. imports decrease
D)  the value of the U.S. dollar falls
E)  U.S. exports increase and U.S. imports are autonomous

Question 17

If imports are plotted on the vertical axis and disposable income on the horizontal axis, the import line

Accepted Answer

A)  slopes downward, but we can tell nothing about its steepness
B)  slopes downward with a slope less than -1
C)  is a horizontal line
D)  slopes upward with a slope less than 1
E)  slopes upward, but we can say nothing about its steepness D

Question 18

A decrease in the value of the U.S. dollar relative to foreign currencies would lead to a(n)

Accepted Answer

A)  increase in U.S. exports
B)  decrease in U.S. imports
C)  increase in both U.S. imports and U.S. exports
D)  increase in U.S. exports and a decrease in U.S. imports
E)  decrease in U.S. exports and an increase in U.S. imports

Question 19

A decrease in the value of the U.S. dollar relative to other currencies will increase U.S. exports.

Accepted Answer

A) True 
 B)False

Question 20

Exhibit 9-4 
-In Exhibit 9-4, which of the following will cause a shift from X-M to X*-M*?

Accepted Answer

A)  a decline in the value of a nation's currency relative to other currencies
B)  an increase in the value of a nation's currency relative to other currencies
C)  an increase in real disposable income
D)  an increase in real GDP

Exam 23:Variable Net Exports

An increase in the value of the U.S. dollar relative to other currencies will increase U.S. imports.

Correct AnswerverifiedShow Answer

If imports increase as disposable income increases, economic growth will __________ net exports and contribute to a trade __________.

Correct AnswerverifiedShow Answer

If the U.S. economy were to go through a severe recession by itself (i.e., without it being contagious to the rest of the world), we would typically observe an increase in the U.S. trade deficit.

Correct AnswerverifiedShow Answer

U.S. economic growth does not contribute to a U.S. trade deficit.

Correct AnswerverifiedShow Answer

Which of the following statements regarding imports and exports is true?

Correct AnswerverifiedShow Answer

Subtracting the import function from the export function produces the net export function.

Correct AnswerverifiedShow Answer

In 2007, the value of the dollar declined, which should have __________ exports, __________ imports, and shifted the net export function __________.

Correct AnswerverifiedShow Answer

An increase in U.S. income would lead to

Correct AnswerverifiedShow Answer

An increase in the value of the U.S. dollar relative to foreign currencies would lead to

Correct AnswerverifiedShow Answer

Which of the following would shift the U.S. net export function downward?

Correct AnswerverifiedShow Answer

If one British pound originally exchanges for one U.S. dollar and then is revalued to exchange for two U.S. dollars, what should happen to U.S. net exports?

Correct AnswerverifiedShow Answer

A decrease in U.S. income would lead to a(n)

Correct AnswerverifiedShow Answer

An increase in U.S. consumers' incomes will decrease U.S. exports.

Correct AnswerverifiedFalse

If U.S. net exports are negative,

Correct AnswerverifiedB

Which of the following factors is not assumed constant along the U.S. net export function?

Correct AnswerverifiedShow Answer

U.S. net exports will fall if

Correct AnswerverifiedShow Answer

If imports are plotted on the vertical axis and disposable income on the horizontal axis, the import line

Correct AnswerverifiedD

A decrease in the value of the U.S. dollar relative to foreign currencies would lead to a(n)

Correct AnswerverifiedShow Answer

A decrease in the value of the U.S. dollar relative to other currencies will increase U.S. exports.

Correct AnswerverifiedShow Answer

Exhibit 9-4 -In Exhibit 9-4, which of the following will cause a shift from X-M to X*-M*?

Correct AnswerverifiedShow Answer

Correct Answer
verified

If imports increase as disposable income increases, economic growth will net exports and contribute to a trade .

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

In 2007, the value of the dollar declined, which should have exports, imports, and shifted the net export function __.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
False

Correct Answer
verified
B

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
D

Correct Answer
verified

Correct Answer
verified

Exhibit 9-4 -In Exhibit 9-4, which of the following will cause a shift from X-M to X-M?

Correct Answer
verified